Presently, the repo rate is 4 percent and the reverse repo rate is 3.35 percent. Adelais Research said that the economic revival is still flat and the pace of improvement is still sluggish.
Reserve Bank of India (nominal picture)
The three-day meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) is starting on Monday i.e. April 5, amid a sudden spurt in the cases of COVID-19 cases (COVID-19 cases). Also, the government has given the central bank a target to keep retail inflation within the 4 per cent range. In such a situation, experts believe that the Reserve Bank can keep the policy rates unchanged in the monetary review. Experts say that the MPC is expected to continue its soft policy stance. The results of the MPC meeting will be announced on 7 April.
Experts believe that the Reserve Bank will wait for a suitable opportunity to announce monetary action. This will allow it to keep retail inflation within the range of 4 per cent (2 per cent up or down) and at the same time ensure the best results of stimulus growth.
Challenges increased due to increasing case of COVID-19
Presently, the repo rate is 4 percent and the reverse repo rate is 3.35 percent. Adelais Research said that the economic recovery is still unknown and the pace of improvement is still sluggish. Apart from this, challenges have also increased due to increase in the cases of COVID-19. Edelweiss said that overall we estimate that policy rates will not be changed. However, the central bank will continue its soft stance.
Big challenge at the time of RBI, repo rate will not change
Dhruv Aggarwal, Group Chief Executive Officer (CEO) of Housing.com, Makan.com and PropTiger.com said that there is a big challenge before the Reserve Bank. Covid-19 cases are increasing in the country. This may put a ‘break’ on the recovery of the economy. Apart from this, the rate of inflation is also going up. Aggarwal said that the central bank will not change the repo rate in the policy review.
He said that at the moment the home loan rate is at its historic low. Many commercial banks have reduced interest rates recently. Further reduction in interest rates will help the industry and the overall economy.
Chief Analyst of Acute Research and Ratings, Suman Chaudhary, said that despite increasing bond returns globally, the MPC will continue its soft approach in its upcoming meeting. The government last month gave a target to the Reserve Bank to keep retail inflation within the range of 4 per cent (up or down two per cent) for 5 years and till March 2026.
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